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Newsom Moves to Slash School, Health Spending — But Asks Feds for a Rescue

How does a liberal, blue-state governor take on the unappealing task of slashing the budget? By shifting a lot of the pressure to the federal government. In revising California’s budget down to $203 billion Thursday, Gov. Gavin Newsom charted a plan to fill a huge deficit by tying many cuts to additional federal aid. If […]

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What Next for California Cities? Deficits, Bailouts and Long Recoveries

Cities have been ground zero in California’s coronavirus response — with many initiating shelter-in-place orders, organizing emergency housing for homeless people and supporting health and essential workers. But even before restrictions get lifted, mayors, managers and city councils are being tested in a new way: pandemic-induced budget deficits. Already, unemployment is projected to be higher than […]

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HSU Faces $20 Million Deficit; CR’s Situation Dire, Too

A joint press release this afternoon sounds the alarm bells that both it and Humboldt State University face “immense budget” deficits at least exacerbated by the COVID-19 pandemic. Difficult decisions apparently lie ahead, including staff reductions. According to the press release, HSU was already facing  deficit of more than $5 million due to already declining […]

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Slush Fund or Healthy Reserves?

Both the California State University system and Humboldt State University have sharply disputed a June 20 report from the California State Auditor’s Office, which charged that the CSU system is sitting on an undisclosed $1.5 billion budget surplus, which included more than $62 million from HSU. The bombshell report and subsequent pushback have left lawmakers […]

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